Global Delivery Model

FEATURED ARTICLES ABOUT GLOBAL DELIVERY MODEL - PAGE 5

Sunil Mehta Vice President Nasscom The encouraging second quarter results of some technology companies has led to increased speculation that the tech downturn is finally over. Was there really a downturn? Indian IT software and services industry grew at 26-28% in dollar terms in the 2001-2003 period. In this period the global IT market shrank or was stagnant. There is little correlation between global IT spend and growth of Indian IT software and services industry.

PUNE: Like parent, like offspring. Progeon, the business process outsourcing (BPO) arm of Infosys, wants to replicate the parent's global delivery model. "Today, we are 100% off shore. Over the next few years, we want to move to Infosys' 70:30 model, of being 70% off site and 30% on site. Yes, we are bidding for some deals like this and it could happen this year," Akshaya Bhargava, MD and CEO of Progeon, said. This is part of Progeon's change of strategy, as it comes up against the likes of Accenture, which can offer such a seamless model and even as it seeks a separate positioning for the country's fast growing BPO industry.

LONDON: Despite challenges from China, the Philippines and Eastern Europe, India still has an overwhelming advantage in IT offshoring, according to Wipro chairman Azim Premji. "Areas such as China, Eastern Europe and the Philippines are becoming major players in IT offshoring but India still has an overwhelming advantage because of the support of the government and the country's huge talent pool," Premji said in an interview published in The Independent on Sunday. Wipro benefits from being able to recruit from the top 50,000 engineering graduates turned out from Indian universities and colleges each year, he said.

Noshir F Kaka Partner, McKinsey & Company, Mumbai To understand the future, at times you have to look to the past. I'm often asked what next year growth rates will be or whether the industry will meet the Nasscom-McKinsey targeted aspiration of $60 billion in exports by 2010. The global addressable market for offshore IT services and BPO is $300 billion. India dominates the market, with an over 65% share of the global IT offshore market and a 46% share of the global offshore BPO market.

CHENNAI/BANGALORE: IT services players are trying to crunch their time to market in geographies like Japan, China and Europe by partnering with native leaders even as they eye higher shares of revenue from non-US territories. There has been a flurry of deals in recent months where large players, such as Infosys, Satyam and Cognizant, have tied up with local companies for a joint go-to-market in these regions. Analysts reckon that such a move would speed up their brand visibility and recognition in new markets.

NEW DELHI: The global meltdown is posing several challenges for IT companies. Apart from worrying about the wild currency fluctuations, IT players have to cope with uncertainties in new contracts, customers cutting back IT investments and an overall sluggish market scenario. Despite the challenges, Infosys Technologies MD & CEO S Gopalakrishnan believes that there is no need to cut manpower and there are several untapped opportunities that Infosys can look at for future growth.

KIRAN KARNIK, President, Nasscom The IBM takeover of Daksh has enormous implications for India's BPO industry. First and foremost, it validates the robustness of the global delivery model for services, even as it reinforces recognition of India as the preferred destination. Second, it implicitly acknowledges the positive policy environment in India to attract FDI. Third, it pays tribute to the talent and entrepreneurship that went into the creation of a successful third-party vendor, such as Daksh.

In the 70's it was outsourcing your work to domestic vendors in the local market, in 90's it was offshoring to a low cost centre in India or elsewhere. And now comes the concept of producing a truly global product/service with collaboration from various centres all over the world. Yes, this is the age of Global delivery model of outsourcing. Call it BPO part II, where the services are harnessed from many , not one centre. Now the call centre may be based in Gurgaon, the back-end software developed in Manila while manufacturing takes place in Shanghai.

In the 70's it was outsourcing your work to domestic vendors in the local market, in 90's it was offshoring to a low cost centre in India or elsewhere. And now comes the concept of producing a truly global product/service with collaboration from various centres all over the world. Yes, this is the age of global delivery model of outsourcing. Call it BPO part II, where the services are harnessed from many , not one centre. Now the call centre may be based in Gurgaon, the back-end software developed in Manila while manufacturing takes place in Shanghai.

MUMBAI: The slowdown is changing the dynamics of software delivery as it sharpens the focus on reducing costs, and driving higher value for some others. From a bilateral offshoring model, companies are moving towards evaluating different attributes of a location, depending on what their IT and business needs are. For some firms, the need is to cut costs, while for others it is to transform their business, Gartner vice-president, research, Ian Mariott told ET. Mariott has been associated with IT services industry for 26 years.